Department will not extend mining charter consultations
Our (resource) contracts must be such that it is a winwin for companies and communities.
THE DEPARTMENT of Mineral Resources (DMR) has ruled out any possibilities of reopening negotiations on the mining charter.
The department said it was satisfied that consultations on the charter had been sufficient.
Deputy Mineral Resources Minister Godfrey Oliphant told journalists on the sidelines of the Junior Indaba on mining that there would be no further extension for consultations.
“We would love to stick to the time frame for certainty. We think we sufficiently consulted on this matter,” Oliphant said.
The department was highly criticised for publishing the revised draft of the mining charter without consulting the Chamber of Mines, which accounts for 90 percent of domestic mining.
The revised regulations require that mines be 26 percent owned by black investors even if they have sold their stakes and give no credit for previous empowerment deals.
Oliphant spoke as the 30 days for the public to make comments on the revised draft of the mining charter came to an end on Tuesday.
“The closing date for submissions was yesterday (Tuesday). It should take 30 days to reflect on the submissions. After 30 days we will have an idea of what needs to be done. The minister (Mosebenzi Zwane) will publish the final version of the mining charter by the end of the year. This is a DMR process, we may need to clarify a few issues with certain individuals,” Oliphant said.
Court matter
The chamber took the DMR to court for a declaratory order on the empowerment provisions on the charter.
Oliphant did not comment on the court matter other than say the department had been engaging with the chamber.
On the Mineral and Petroleum Resources Development Act Amended Bill, which has yet to be signed by President Jacob Zuma owing to “problems constitutionally”, Oliphant said that the government had made progress.
“The National Council of Provinces has been consulted. The target is to complete the process by November. We are dealing with issues,” Oliphant said. Despite confidence in the consultation process, it emerged that the charter was inhibiting junior mining companies.
Otsile Matlou, a director of ENS africa, said that mining legislation had been under review for 10 years.
“We cannot have a situation where there is policy uncertainty in the mining sector – this is detrimental to the economy. We suggest that we move with speed to address the uncertainties,” Matlou said.
South Africa did not have a focus on junior mining houses Matlou noted. He said the awarding of licences should be a speedy process as junior mining houses did not have the budgets of majors. “You cannot apply over 18 months for a permit to be used over 12 months.” Meanwhile AU chairwoman Nkosazana Dlamini-Zuma, told the indaba that she believed that mining could act as a catalyst for the next wave of Africa’s development.
Dlamini-Zuma said Africa needed to do things differently, including that the continent ceased to export jobs through exporting raw minerals.
“It is important that resources must benefit… the people. These resources do not belong to the mining companies, they are ours. Our contracts must be such that it is a win-win for companies and communities,” she said.
The conference continues.